Profit to Turnover ratio limit

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This discussion addresses the acceptable profit to turnover ratio for a client whose business turnover is Rs. 40 lacs and they wish to show a profit of Rs. 12 lacs. The advice given is that a 30% net profit is generally acceptable. It's also recommended to consider the average profit margins prevalent in the market when determining an appropriate ratio.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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14 December 2022 Dear Sir,

I have got an individual client whose turnover is Rs. 40 lacs from proprietory business but he wants to show profit of Rs. 12 lacs after deducting all expenses. His return is not filed under Presumptive Taxation scheme.

I want to know is there any minimum profit which needs to be kept in Balance sheet when return is not filed under Presumptive Taxation scheme.

Please help me in this matter.

Regards,
Divyesh Jain